Johannesburg, 14 Mar 2000
Mustek has released interim results that reflect a steady growth and the company says it now has 19% of the PC market through its Mecer brand.
Headline earnings per share are up 25% from 36.1c to 45.2c. Turnover grew from R569 million to R721 million for the six months to December 1999.
However, operating margins are down for the period, from 8.8% to 8.1%. Mustek attributes the lower margins on Compaq sales and slower sales to the corporate and public sectors in the third and fourth quarters resulting from general Y2K fears.
A BMI-TechKnowledge study reported that Mustek`s Mecer brand of PCs had increased market share to 19% for the 1999 calendar year. This is up from the 15.7% reported in 1998, representing a 24% increase in PCs delivered in 1999.
Mustek holds 43.5% of Rectron and cited the company`s 96% increase in turnover and 51% increase in headline earnings per share as reason for satisfaction with the investment.
Looking forward, Mustek says it will continue to explore new markets, which include expansion possibilities into Pacific Rim countries and Sub-Saharan Africa.
In line with company policy, no dividends have been declared.
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